Cost of 2014 Games rises to £454m

The budget for the 2014 Commonwealth Games in Glasgow is to be increased by £81m, it has been announced.

The organising committee for the games said funding for the event would rise to a total of £454m.

The bulk of the extra cash will come from the Scottish government. The city council will provide an additional £9m.

Council leader Steven Purcell said he was "disappointed" by the increase but accepted it had been caused by "changing circumstances".

The Scottish government will contribute an additional £39m, plus a further £20m from a reserve fund.

A total of £13m will be raised through commercial activities.

Glasgow 2014 Limited, said a number of factors including legislative changes, and in particular rising broadcasting costs, had contributed to the budget increase.

The Scottish government will continue to make the case for the recovery of £150m lottery funds diverted from Scotland to pay for the London Olympics

Alex Salmond MSP First minister

It follows a review by financial advisers PricewaterhouseCoopers.

An extra £41m will go on the "core budget" for the Games, a rise from £333m to £374m

Lord Smith, chairman of the organising committee, said the cost of delivering the broadcast signal had increased "dramatically" due to advances in technology, including the introduction of high definition, and the failure to sell the domestic rights to the BBC.

Lord Smith said: "Previous Games have been able to offset the host broadcast costs against the sale proceeds for the domestic rights.

"At this stage the organising committee has been unable to engage the BBC on this basis and with the current categorisation of the Commonwealth Games as a B list event, is unlikely to be able to secure another domestic broadcaster.

A 38.5 hectare athletes village will be built in the Dalmarnock for the Games

Organisers said an extra 100 staff will be needed to host the games, bringing the total to between 950 and 1,000.

In 2007 the man leading Glasgow's bid to host the games, Derek Casey, told the BBC Scotland news website the then £288m price tag was an "affordable sum" that could be "contained" thus avoiding the spiralling costs witnessed elsewhere in Barcelona, London and Manchester.

He said: "We are in good shape in budget terms.

"We've gone through this with a fine-toothed comb."

A spokesman for the Glasgow 2014 Limited said Mr Casey and his team had been "working on the best information available at that time."

He added that staffing and budget costs had been based on figures from the Melbourne Games which at that time had not been finalised and did also increase.

Speaking at a press conference at Hampden Lord Smith added: "None of the Games' partners want a position to emerge where the budget keeps creeping up over the period between now and 2014, so we have approached this exercise with a desire to be as realistic as possible.

"We are all united in the belief that these Games can be the catalyst for significant change, and that they will generate enormous sporting, social and economic benefits for the whole of Scotland.

None of the Games' partners want a position to emerge where the budget keeps creeping up

Lord Smith Chair, Glasgow 2014 Ltd

"We are confident that the budget announced today will enable all those potential benefits to be realised."

First minister Alex Salmond said: "This necessary budgetary increase is challenging for the public purse but the funding boost is good news for 2014 and will ensure an exciting, efficient and effective event.

"Of course this funding represents an enormous commitment to Glasgow but the benefits and value will be felt throughout Scotland."

He added: "There are still issues to be resolved.

"The Scottish government will continue to make the case for the recovery of £150m lottery funds diverted from Scotland to pay for the London Olympics, and to call for Scotland to receive its share of Olympic regeneration investment."

Mr Purcell said: "The games will bring real benefits for all Glaswegians and I will do all I can to ensure that those benefits are delivered."

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